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Turkish Petrochemical Sector to Grow to $15bln by 2015

Oil&Gas Materials 3 June 2008 11:06 (UTC +04:00)

Azerbaijan, Baku, 2 June / Trend / Over five years it is planned to invest around $20bln in the development of the Turkish petrochemical holding Petkim, Seljug Aksoy, the head of the Turkish PAGEV, said. PAGEV is an institute involved in studies, development and training of plastic producers in Turkey. Aksoy's statements are indicated in the official website of Petkim holding.

According to Aksoy, from the technological and trade aspect Petkim has become a great support to plastic sector of Turkey.

"Unfortunately we cannot fully cover the current demand, this sector needs facilities for serious rivalry. The privatization of the petrochemical sector will intensify the work of Petkim and the plastic products manufacturing sector," Aksoy said.

Metin Kilci, head of the Turkish Department for Privatization, said that the petrochemical sector of the country currently amounting to $7bln, will increase to $15bn by 2015 with the average annual rise of 11%.

Kilchi said that Petkim can cover only 28% of demand. However, Petkim's share in the market might decrease to 14% unless enough investments are put by 2010.

"IAE our country will be obliged to import petrochemical products for $10bkn by 2015," Kilchi said.

A ceremony to hand over 51% shares of the Turkish petrochemical holding Petkim, purchased by the alliance of SOCAR (State Oil Company of Azerbaijan) Turcas Petrol/Injaz Projects, was held in Turkey on 30 May. SOCAR/Turcas/Injaz acquired 51% share of the holding at $2.04bln. two power staions operatingon coal and gas will be built at the basis of the enterprise.

Investments by the alliance SOCAR/Turcas/Injaz to modernize the production capacity of the Turkish Petrochemical Holding Petkim will increase the enterprise's share in Turkey's market from the current 27% to 40%. The investments of the alliance over the next 1 to 2 years may total $50-60bln. Turkey currently imports 70-75% of the necessary chemical products, but after developing Petkim, the investment alliance SOCAR/Turcas/Injaz will provide an opportunity to increase the import up to 30%. The annual increase of chemical product demand in Turkey totals 12%.

SOCAR/Turcas/Injaz alliance intends to construct a refinery near Petkim to supply raw material to the enterprise. Initially the capacity of the refinery will make 6-8mln tons of oil per year.

Petkim Petrokimya Holding is specialized in the production of plastic packages, fabric, detergents and is the sole producer of these goods in Turkey, exporting one fourth part of its output.

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